new breed. is this genetically altered fish about to land on your supermarket shelves? >> nothing is going to happen because i ate this? >> and going vogue. could the glamorous and formidable queen of american fashion be president obama's next big ambassador abroad? and good evening. tonight, we have the news that american home owners have been waiting to hear. the price of the family house is roaring back to life. home prices up more than 6% across the country, and that's the biggest jump in six years. abc's david muir is here to tell us what's ahead and which markets are causing the big stir tonight. david? >> diane, we've been waiting to see a result like this. a jump for years now tracking the housing crisis since it started following families, entire neighborhoods as they waited for a rebound.

and today, when we went back to one street, one of the hardest hit in america, we couldn't believe the turnaround. call it an early christmas gift for millions of americans who own homes. tonight, new signs home values are finally on the rise again. the biggest spike, in arizona where home prices are up more than 21%. >> and this is cortis street. >> reporter: perhaps you'll remember our drive through that neighborhood outside phoenix, it was ground zero for the housing crash four years ago, foreclosed, for sale, for rent. 130 homes on the market in that one subdivision alone and sherri mcbroom was trying to sell one of them. what did they buy their home for? >> $308,000. >> reporter: and what it's listed at now. >> 130. >> reporter: 130. our jaws dropping back then. and late today we were stunned again. when we checked in with that same realtor. in the last six months how many homes have sold in that one subdivision alone. >> there were 163 homes that

sold in the last six months. >> reporter: we were standing there when that market hit rock bottom. there were 130 homes for sale once. how many for sale tonight? >> 17 homes for sale right now. >> reporter: so as you drive down that street real progress? >> absolutely. >> three bedrooms. >> reporter: in fact, in 2008 as the recession took its toll, the median price of a home in america was $186,500. a year later down to 172,000. another year, down again. last year, an even steeper drop down to 160,000, but tonight, that rebound. the median price back up to $178,600. look at the top ten states where home prices are rising fastest, among them states where housing was hardest hit, nevada, california, florida and michigan. >> hi, david. >> reporter: in ann arbor the evangelista family gave us a tour of their newly built home. >> this is my absolute favorite spot. >> reporter: another bright spot, the nation's biggest home builder, toll brothers, reporting tonight orders rising sharply. the evangelistas' home is one of

them, and tonight they told us the number one reason why. >> the mortgage rates were so low, it was the best buy. it's a steal. >> reporter: a steal, he says. behind it, dynamics and historic lows for mortgage rates, and homeowners beginning to put their homes on the market. a low inventory and right now much of the country dealing with rock bottom prices. diane, i was reading today in orlando alone, inventory at seven-year lows, home owners begin to come back on the market, good news because there are buyers waiting for their homes. >> great news and on that hard-hit street, what a turnaround. >> great to go back. >> thanks, david. now, from the hot housing market to the heat, period. across the country we felt it today. temperatures that signaled spring, not christmas. records falling, and abc's meteorologist ginger zee now tells us about the latest entry in this strange weather year and how long it will last. >> reporter: dandelions in december, witch hazel in winter. these photos from the midwest were taken just this week, and at this point, 2012 is on track to be the warmest on record in the lower 48.

>> it's bizarre. it's really bizarre, and it makes me so incredibly happy. >> reporter: linda is not alone. in chicago, warm winter coats and hats were replaced by t-shirts and shorts this week. the windy city soared almost 30 degrees above average monday to 70. >> it puts me in a great mood, but it doesn't feel like christmas. >> reporter: the far from holiday heat marched east where joggers in central park enjoyed a balmy 62-degree day, 15 degrees above the average temperature, and in mississippi, high temperatures and melting ice forced this skating rink to close. across the country there's been 400 record high temps this december alone. the reason, a strong ridge of high pressure, a kink in the jet stream, allowing springlike temperatures to sneak up where they don't usually hang out. so you're probably wondering and sitting at home thinking, now does this mean this winter is going to be mild as last? well, seasonal forecasting is a ways off, so i can't answer that

one, but what i can tell you is all these hot spots up and down the northeast will be about 20 degrees cooler tomorrow. a cold front is coming through and outlook for the next two weeks takes us almost to christmas and brings almost everyone east of the rockies above average. diane? >> above average. love those dandelions this december. thank you, ginger. and, of course, it was also warm in the nation's capital today despite the big chill between democrats and republicans hurtling even closer to the fiscal cliff. now, 28 days from now. abc's jake tapper has news tonight on one thing both sides may agree to change, and it's something that could affect millions of american families and fast. >> reporter: president obama used his first interview since his re-election to drive home his insistence that key to the u.s. beginning to pay down its debt and avoid going over the fiscal cliff is raising tax rates on the wealthiest americans. >> we're going to have to see the rates on the top 2% go up, and we're not going to be able to get a deal without it. >> reporter: if republicans

agree to do that, the president told bloomberg television, he'll agree to serious spending cuts. republicans have offered to raise taxes on higher incomes by $800 billion, not by raising tax rates, but by eliminating some deductions and loopholes. during last year's budget showdown, the president said he wanted to do exactly that. >> what we said was give us $1.2 trillion in additional revenues, which could be accomplished without hiking tax rates, but could simply be accomplished by eliminating loopholes, eliminating some deductions and engaging in a tax reform process that could have lowered rates generally while broadening the base. >> reporter: but now the president does not. he says it will not raise enough revenue. >> it's not me being stubborn. it's not me being partisan. it's just a matter of math. >> reporter: amidst all this disagreement, one area where there might be potential compromise, raising the age when

seniors can start receiving medicare, from 65 to 67. that would help the government save almost $6 billion a year, according to one study, though it would also come at a cost. an average of $700 more in out-of-pocket costs for those seniors no longer eligible for medicare, not to mention additional health care costs for employers. and, diane, you talked about the political cold front here in washington, d.c. how frosty are things? well, house speaker john boehner did come to the white house last night for president obama's annual holiday party for members of congress, but he did not get in the receiving line to say hello to the president and get a picture taken with him as he has done in previous years and as dozens, if not hundreds, of members of congress did last night. diane? >> okay, jake tapper reporting from the white house tonight. and now we head overseas. take a look at the size of this protest today in cairo, egypt, tahrir square, tens of thousands

of protesters reeling from tear gas but determined to send a message to the world about their new duel over democracy, and here's abc's alex marquardt. >> reporter: they came by the tens of thousands hurling stones, pulling down barricades, riot police fired volleys of tear gas and retreated. as the masses grew, president mohammed morsi left the palace. ever since the revolution that captivated the world, egypt has struggled on its road to democracy. two weeks ago, president morsi gave himself unchecked powers -- he says to put egypt on a democratic path. there was outrage on tahrir square. we were there. no one here believes morsi when he says that these powers are just temporary. they say they traded one tyrant for another. then a surprise -- morsi's islamist allies rushed through a new constitution. critics say it could make egypt more islamic and doesn't do enough to guarantee freedoms, including women's. egyptians will have a chance to vote on the new constitution in two weeks. tonight's protesters could

boycott, but for now it looks like it will go ahead, and the president may very well get his way. alex marquardt, abc news, jerusalem. and to england now where kate middleton, the duchess, is spending a second night in the hospital after the announcement she's having a baby, but it has been rough so far. abc's lama hasan now with an update on her health and the clues you could see in her husband prince william's face. >> reporter: when william arrived at the hospital earlier today, he appeared somber. but after spending more than six hours by his wife's bedside, when the prince emerged -- >> your royal highness, how is the duchess? >> reporter: -- he was clearly more relaxed with a beaming smile. moments later, the palace gave a clue as to why the change in his expression. "the duchess is continuing to feel better," the statement read, but it went on that "kate remains in hospital and continues to be treated for

hyperemesis gravidarum," the crippling form of morning sickness that causes extreme nausea. barely 12 weeks along, we're now learning new details about the weekend when william and kate were forced to go public with the pregnancy. the couple were staying with kate's parents when kate reportedly became so sick, the decision was made to head to the hospital. >> she didn't need to be taken by an ambulance. it wasn't an emergency dash. and once they had been told by the doctors that they should go to the hospital, they decided that it was fine for william to drive her. when kate walked in, i think she was in quite good spirits despite the fact that she's obviously feeling incredibly nauseous. >> reporter: kate's parents found out their daughter was pregnant over the weekend, but the royal couple wanted to keep their baby news a secret until december, to tell the royal family on christmas day. and tonight there are no signs the queen here at buckingham palace or kate's family have gone to see her at the hospital just yet. according to one royal reporter, perhaps it's because they know that prince william is doing such a good job of being by her side.

diane. >> all right. the latest from london from lama hasan. thank you, lama. and still ahead on "world news," the superfish built by scientists at a secret location in central america. it could be heading to your dinner table next. two years ago, the people of bp made a commitment to the gulf. bp has paid over twenty-three billion dollars to help those affected and to cover cleanup costs. today, the beaches and gulf are open, and many areas are reporting their best tourism seasons in years. and bp's also committed to america. we support nearly 250,000 jobs and invest more here than anywhere else. we're working to fuel america for generations to come. our commitment has never been stronger. five days later, i had a massive heart attack.

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and now tonight you're going to see an exclusive look at something that may be approved by the government as safe to serve for dinner. it's a fish, but it's been changed, genetically altered by scientists who made it grow bigger and grow faster than ever before. but is it safe to eat? our jim avila traveled to a hidden site in panama to uncover the secrets of this superfish. >> reporter: behind padlocked gates and barbed wire fences in panama grows what could be a landmark change in what we eat. shades of "jurassic park" where movie scientists played with dinosaur dna. here actual scientists grow a dna-altered salmon producing the first bioengineered meat on track to be approved for human consumption. critics call the process creepy and label it frankenfish. >> when you move the dna from a species into another species, you create a new life form that's so new and so unique that you can get a patent for it.

>> reporter: abc news is the first to see up close and actually taste this mysterious fish fda scientists have ruled is as safe as food from conventional atlantic salmon. this is clearly what they call frankenfish? >> these are very healthy beautiful atlantic salmon. >> reporter: the big difference, size. this is a one-year-old atlantic salmon dwarfed by the new genetically altered salmon of the same age. how do they do it? by merging the dna of three fish into one. taking dna from a chinook salmon and from a sea eel to produce an atlantic salmon that grows fast from birth. >> you get to market size at least 12 months before any other type of salmon that's out there. >> reporter: aquabounty says the fish are ready for market, and the company now awaits final fda approval. but have we gone too far? >> it opens up a whole other section of the grocery store to this technology which we think is still not fully understood. >> reporter: there is no proven link between genetically altered food and health problems. but critics are skeptical about aquabounty studies and complain

government scientists have not done enough independent work and ignore the unknown. they worry but have no proof this new fish will increase allergies and theorize its altered hormone system could somehow cause cancer. the fda's review of company data found those concerns unfounded. is this something i should be afraid of? >> man has been altering the nature of animals since man walked upright and began domesticating animals. >> reporter: a new lab-created meat in the pipeline for fda approval that is at once very different and just the same as america's favorite dish for dinner. same texture. eating frankenfish. >> please don't use that term. >> and jim avila with us now. so, jim, how soon could this be approved and in supermarkets? >> reporter: well, that's the latest mystery about this fish, diane. the fda just won't say. its scientists approved it as safe two years ago. the company says they may go out of business before the fda actually approves it. >> and will there be a label on it?

is it a required -- is it a requirement that there be a label on it if it's in the supermarkets? >> if this fish is approved, it will not be labeled separately from farmed atlantic salmon so you will not know unless you buy organic or you buy a wild salmon. if you buy farm salmon and it's in your supermarket as farm salmon, it could be this fish. >> all right, jim. thank you for your exclusive look. and we want everybody to know there will be a lot more of jim's reporting on "nightline" tonight, as well. and coming up here, the pinocchio effect. could your nose actually change when you lie? we're going to show you something amazing. [ female announcer ] the humana walmart-preferred rx plan p-d-p

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and select generic hypertension drugs available for only a penny... so you can focus on what really matters. call humana at 1-800-808-4003. our "instant index" tonight begins with a big headline. the end of the world has been canceled this year. here is the actual quote from nasa. the world will not end on december 21st, 2012, or any day in 2012. it all started within an ancient mayan calendar which spawned rumors of armageddon on december 21st, 2012, a collision with a comet or another planet. nasa was inundated with so many questions about where to take cover, they want you to know they have scanned the skies, and they say not happening, no way. and another new take on an old story. we all remember the video of pinocchio. >> why, i -- >> monsters?

weren't you afraid? >> no, ma'am, but they tied me in a big sack. >> as you know, it was his nose that gave him away with every fib. but tonight new research out of the university of granada, spain, shows walt disney was a science pioneer. look at this. scientists decided to take thermal pictures of someone telling a lie, and you can see it right there, the picture is showing the area around the nose is bright red. it turns out our noses heat up when we stretch the truth, somehow connecting the part of the brain that links heat to emotion. and we have another fresh look at an old idea. our picture tonight, the iconic hollywood sign after its face-lift ready for its close-up. nine letters, each 45 feet tall given a fresh coat of paint, 275 gallons, if you're counting, and the makeover now prepares the sign for its 90th birthday next year. and we really do love hearing what captured your imagination

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fashion meets high-wire diplomacy? abc's david wright. >> reporter: she's a woman renowned for exquisite taste and withering looks. the inspiration for meryl streep's character in "the devil wears prada." >> you have no style or sense of fashion. >> i think that depends on what your -- >> no, no, that wasn't a question. >> reporter: a portrayal anna wintour may not have enjoyed, but she told barbara walters she respected it. >> did you recognize any part of yourself? >> well, i'm a very decisive person, so if meryl seemed somewhat strong, i respect that. >> reporter: she is the single most powerful woman in the fashion industry. her influence felt not just on the runway but in the shopping malls too. as the documentary "the september issue" revealed, the editor of "vogue" doesn't mince words. >> i feel it's quite one-dimensional. >> reporter: she raised

millions for the president's re-election. >> so please join us. but just don't be late. >> reporter: and politicians often reward their biggest fund-raisers, but ambassador anna wintour? privately white house sources say she is in the running for a plum diplomatic post, either ambassador to france or britain. wintour may not even want the job. she is, after all, the reigning queen of fashion and queens don't have to be diplomatic. david wright, abc news, los angeles. >> and thank you for watching. we're always here at abcnews.com. "nightline" will be along later and we want to leave you with a look of what the holiday season is like in visalia, california, where everybody loves the ice cream sundaes on main street. this video is courtesy of our fresno affiliate abc30, and it's the candy cane lane parade. the holidays have begun. good night, everyone.

saturated ground, more rain on the waichl we'll take you live to the soggiest part of the bay area and show you when the storm will hit your neighborhood. >> also, family members are hoping for the best after northern california couple vanishes without a trace during a trip to the sierra. nudity ban from ac'(=m and one city's proposal to use surveillance drones has some fighting to keep hose drones grounded. >> and sky 7 hd is live over the scene of the breaking news on the peninsula. rain-soaked soil continues to cause problems.

crews are just about done now cleaning up the>fcq remnants ofa large tree. >> that tree came crashing down across a major highway, right into the middle of the evening commute. here is how it looked just minutes ago. crews chopped up ask removed much of the tree. all northboundqb4qz closed at 9th avenue about anqjil hour. workers on the scene cleared the road, good evening, i'm cheryl jennings. >> and i'm dan ashley. >> no real sign of a storm right now. you can see in this live view of san francisco from our camera in contra costa county. more rain is headed our way. >> let's get the latest from this path. >> here is a good view. you can see a large match of moisture north right now. is still off shore. rain continues it's movement in the general direction of the central part of the bay area. right now,